Parent company owning subsidiary to keep subsidiary's business distinct

I am going to be forming a painting company (construction) soon, but I have other sources of income that I don't want intermingled with my painting company. But, for the purposes of loans and so forth, i just want to show myself as the employee of one company. Ideally, what I would like to do is have my painting company (either s-corp or llc) owned by a parent company (s-corp [because I want to keep self employment tax as low as possible.]) This way, I could be paid by just one company while keeping my other sources of income distinct from my painting business. My question is, is this plausible? I have a very basic understanding of tax law. I live in Florida if it makes a difference. Thank you very much for any help.

I am going to be forming a painting company (construction) soon, but I have other sources of income that I don't want intermingled with my painting company. But, for the purposes of loans and so forth, i just want to show myself as the employee of one company. Ideally, what I would like to do is have my painting company (either s-corp or llc) owned by a parent company (s-corp [because I want to keep self employment tax as low as possible.]) This way, I could be paid by just one company while keeping my other sources of income distinct from my painting business.====> Self-employment tax applies to sole proprietors, but not to S-Corp officers, even if they are employed by the company. However, even if they own stock in the company, officers must pay normal employment tax for employment income, which includes Medicaid, Social Security, unemployment insurance tax and any other income taxes, such as state income tax.Needless to say, aslobngas you're self-employed, you can avoid higher Social Security and Medicare taxes is to organize your business as an S-corp.
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Since if you're self-employed, you'll usually have to pay higher Social Security and Medicare taxes, collectively known as self-employment taxes,SECA tax than if you were an employee of a company. One way to help avoid these higher taxes is to organize your business as an S-corp. The IRS may take a close look at your taxes if you choose this route, as you could end up lowering your overall tax liability while generating the same net income.Once you form your business as an S-corp, you can classify some of your income as salary and some as a distribution. You'll still be liable for self-employment taxes on the salary portion of your income, but you'll just pay ordinary income tax on the distribution portion. Depending on how you divide your income, you could save a substantial amount of self-employment taxes just by converting to an S-corp. The IRS tends to take a closer look at 1120S returns since the potential for abuse is so large. For example, if you make $500Kin one year but only designate $20K of that as salary income, you might trigger an IRS inquiry, since you are avoiding so much self-employment tax. The guiding principle is that you must designate a "reasonable" amount of your income as wages, rather than a distribution. What constitutes "reasonable" can often be a gray area, but if you push the envelope too far, you put yourself at risk for an IRS audit and potentially penalties and interest on any back taxes assessed by the IRS. While an S-corp may save you in self-employment taxes, it may cost you more than it saves. As with larger corps, an S-corp has both start-up and ongoing legal and accounting costs. In some states, S-corps must also pay additional fees and taxes. For example, in CA state, an S-corp must pay tax of 1.5 % on its income with a minimum annual amount of $800 or $850 asfaras I know. This tax is not required for sole ownership businesses.IN the case of LLC, LLC members are not employees but self-employed business owners, contributions to the Social Security and Medicare systems are not withheld from their paychecks. Instead, most LLC owners are required to pay the self-employment tax directly to the IRS.The current rule is that any owner who works in or helps manage the business must pay this tax on their distributive share his or her rightful share of profits. However, owners who are not active in the LLC that is, those who have merely invested money but don?t provide services or make management decisions for the LLC may be exempt from paying self-employment taxes on their share of profits. The regulations in this area are a bit complicated, but if you actively manage or work in your LLC, you can expect to pay the self-employment tax on all LLC profits allocated to you.

My question is, is this plausible? I have a very basic understanding of tax law=========>>I guess it depends; Parent company creates subsidiary corp and maintains the biz as separate legal entity, although the parent company still retains an element of control through partial or total shareholding and the ability to appoint the subsidiary?s board of directors. Nevertheless, the law generally requires sub corp to maintain its own separate set of financial book, file its own tax return and pays income tax for the revenue it generates; however luckily, the tax law allows sub to deviate from these requirements under some circumstances. The US tax system requires all US companies to pay federal income tax. Sub corporations are legal entities existing separately from the parent company. At registration, the incorporators of a sub submit the name, articles of incorporation and bylaws of the sub and obtain a federal tax identification number that is distinct from that of the parent company. Because they are companies in their own right, they are subject to the federal tax laws that require them to pay income tax on all their activities, However,as said, since subs are a creation of parent companies, the ta x law allows the latter to file consolidated group financial reports under limited circumstances. Parent companies may submit consolidated tax returns when the company presents itself and its subsidiaries as a single taxpayer. This is done when the parent company wishes to offset the losses of one company against the profits of another. However, the parent company can only combine the financial statements and tax returns of subs in which it owns at least 80% of the shareholding and voting rights. Furthermore, the sub corp must also file an election with the IRS to confirm that it is filing a consolidated tax return for that year. States also impose a variety of corp taxes, including sales and use tax and taxes on the use of intangible assets such as trademarks and patents. Sub corps may be useful in minimizing or avoiding these taxes because parent companies may set them up in states where tax rates are lower or nonexistent. For example, if a sub corp wishes to exploit a new trademark, it may open up a subsidiary in DE state, which doesn't have a trademark tax.